In recent years, there has been an ever-increasing utilization of satellite television systems (TVRO) and cable TV which has created an increased demand by an ever-increasing audience for programming beyond the typical programming presently commercially available. This has led to the development of premium channels and other "special event" premium programming which is accessible only upon the payment of an additional fee, i.e. such as in pay-per-view (PPV) which permits a viewer of specific special event programming to pay a surcharge for the privilege of viewing the "special event" over his cable TV connection. Such "special events" have included major sporting events, first run movies, and other programming which is not ordinarily commercially available. This has met with wide success and has greatly enhanced the desirability of subscribing to a cable TV system, or alternatively owning a satellite television system. However, there are some limitations to the "special event" programming available even through the PPV and similar systems because of the advent of VCR technology. Presently, those "special event" programs available to PPV systems, including especially movies, are timed to coincide with the end of the theatrical or "first run" release of those events in movie houses, and with the release of those "special events" for videotape sale and rental. While this is generally before the "special events" have been released to the premium cable TV channels such as HBO, Showtime, etc., this can still be several months after the theatrical release. Generally this policy is followed because of the inability of the cable TV and other distribution systems to prevent unauthorized taping of the "special event" and mass tape reproduction which would destroy its marketability for videotape sales and rentals. Therefore, there are virtually no first run movies which are distributed by the PPV systems and, instead, film revenue is generally collected for showing films at the movie houses, over the premium channels, and subsequently after the films have been placed in general release through videotape sales and rentals. Although the PPV market represents a significant market and could dramatically add to the revenue to be gained in the distribution of "special events", and especially first run movies, this inability to permit viewing while preventing unauthorized reproduction of a TV program transmitted by satellite or over cable has eliminated it as a source of revenue. Furthermore, the ability to program first run movies in a PPV mode would greatly enhance a premium channel's desirability and significantly increase its utilization and acceptance by the general viewing public.
Most videotapes which are sold and made available for rental are presently produced in a "copy protected" format to inhibit the unauthorized duplication of the videotape and preserve the market. This copy protected format permits the videotape to be played back on a VCR and viewed, but copies duplicated onto a blank cassette have serious distortion induced in them which virtually eliminates their entertainment and resale value. While these copy protected formats are reasonably effective, there are limitations in their effectiveness and their non-interference with playback in that the videotape must be capable of playback in all types of VCRs, and the tape encoded signal must produce a viewable signal.
In addition to the copy protected format, there has been developed in the prior art a scheme for embedding a signal in a broadcasted TV program which introduces distortion into any copies made. This formatting is generally more secure and introduces less distortion into the TV program than the copy protected format as the program is directly viewed from the broadcast signal and does not have to be capable of recording and playback from a recorded signal. This type of formatting is generally referred to as "anti-taping". By utilizing this existing technology, the inventor herein has succeeded in developing two systems which for the first time makes it feasible to sell a program on a PPV basis without destroying other secondary markets, thereby adding another layer of revenue-producing distribution for first run movies and other "special event" programming.
Both of the inventor's systems are capable of receiving TV programming which has been encrypted or "scrambled" as are many premium channels presently being broadcast over cable and satellite systems such as HBO, Showtime, etc. However, in the first embodiment these encrypted programs carry an additional tag or code which is deciphered by the receiver to indicate whether the program may be taped or not. The operator then has the ability to select either view only, or view and tape modes of reception. The receiver generates billing information which can be transmitted to a billing authority to properly charge the viewer for his selected mode of viewing and/or taping the program. In the viewing only mode, the program is processed by an anti-taping circuitry resident in the receiver which encodes the TV program signal such that no tape with any entertainment or resale value can be made of the program and it can only be viewed. In the view and tape mode, the TV program is processed by a copy protected circuit resident in the receiver which modifies the signal so that the TV program may be viewed and also transcribed onto a first video cassette by a special VCR to generate a single copy of the program. However, the recorded program is itself "copy protected" such that if subsequent copies of the first cassette are made with a standard VCR, distortion is introduced which significantly impairs their viewability. By utilizing this technology in this manner, the inventor herein has succeeded in designing and developing a system which is ideal for the distribution of special events such as first run movies. In a typical transaction, a first run movie would be broadcast over the cable system, or through a satellite TV distribution system, to its subscribers. Any subscriber would have the option of choosing to merely view the programming for which he would pay a first fee, or he could choose to view the programming as well as create a first copy of the program upon the payment of a second higher fee. This second fee would include a charge related to the purchase price of a cassette of the program. However, this level of distribution would not destroy subsequent sales of prerecorded tapes or rental thereof as the first copy recorded by the viewer on his special VCR would be copy protected to inhibit a pirate from making additional usable copies and selling them.
In a second alternate embodiment, the copy protect mode is eliminated from the system. This does not provide the advantage of permitting an operator to make a single tape with his special VCR. On the other hand, any VCR can be connected to the system of this embodiment to make a copy. Thus, the system of the second embodiment is somewhat simpler and less expensive which can be a factor as each home should have one of the systems of the present invention. Furthermore, the ability to use the system with a standard VCR makes it more versatile in that many homes presently have one or more standard VCRs.
The foregoing has been a brief overview of the system and some of its features. A more thorough understanding may be gained by referring to the drawing and the detailed description of the preferred embodiment which follows.